Updated February 03, 2025 at 07:32 AM ET
Global stock markets slumped, the dollar strengthened, oil prices rose, with U.S. stock market futures down sharply Monday, after President Trump imposed tariffs on imports from key trading partners Mexico, Canada and China over the weekend.
Asian markets fell with Taiwan, South Korea and Japan performing the worst. The Nikkei Index in Japan down by around 2.5%, while Hong Kong's Hang Seng dropped by 1.3% in early trading.
Trump imposed a 25% tax on most goods imported from Canada and Mexico, and an additional 10% on goods from China.
The President's tariff threats also rattled markets in Europe. The pan-European STOXX 600 index was down 1.4% Monday morning. Germany's DAX was down 2%. The FTSE 100 index, which tracks the hundred largest companies listed in London, fell 1.25% at the start of trading.
The stocks of many automakers were down, given the complex nature of the supply chain manufacturers share between the U.S., Canada and Mexico. Many also manufacture cars in Mexico or Canada before exporting them to the U.S. Stellantis, Volkswagen, Toyota, Nissan and Honda's shares all fell. GM and Ford shares were down sharply in pre-market trading Monday.
President Trump said Sunday night that new tariffs on the EU would "definitely happen" but suggested he may take a softer line on the U.K., saying he had a good relationship with Prime Minister Keir Starmer but that the U.K. "might" still face penalties.
The dollar meanwhile strengthened against a range of currencies including the euro, the Mexican peso and the Canadian dollar.
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